Incorporation of a limited liability company (Sociedad de Responsabilidad Limitada) in El Salvador. Service offer

Director: at least 1, individual / legal entity; no citizenship / residency requirements. The register of directors is available to the public.

Shareholder: at least 2, individual / legal entity; no citizenship / residency requirements. The register of shareholders is available to the public.

A company in El Salvador must have an authorized representative to register and operate thereafter.

There are no requirements regarding authorized representative’s citizenship; this person can be a foreigner but must physically be in El Salvador since they represent the company before state authorities and guarantee that the company acts in accordance with local laws.

At the stage of incorporation of the company, its authorized representative must personally visit El Salvador to sign incorporation documents.

A company in El Salvador must also have a local registered address.

In order to incorporate a company in El Salvador, each shareholder of the company must obtain a tax identification number (NIT). They can do it by personally visiting El Salvador or by power of attorney.

Legislation of El Salvador contains a minimum authorized capital requirement, which must amount to USD 2 000. 5% of the minimum required capital (an amount of USD 100) must be deposited at the new company’s incorporation in an account opened with a local bank.

The rest of the authorized capital must be paid within 1 year after the incorporation of the company.

1. Provision of documents for persons in the company’s structure

The following documents must be provided for each individual in the structure of the company (first, as a scan copy, then, certification and apostille will be required)*:

• proof of identity (for example, the main page of the passport / ID);
• proof of residential address (for example, a utility bill / bank reference or bank statement containing the full name and residential address – not older than 3 months).

*We can accept document copies certified by a notary or another authorized person. Incorporation of a company also requires attaching an apostille to the original documents and sending them to El Salvador.

The list of documents for legal entities in the structure of the company shall be agreed separately.

2. Check of the company’s name

The name of a company in El Salvador must be in accordance with the law and unique (not coincide with an existing name) and must not mislead. Words showing connection to the state must not be used without special approval. A company name shall be checked for availability with the National Registry Center (CNR).

3. Payment of the authorized capital

4. Signing the constitutional documents

Constitutional documents must be signed in the presence of a notary in El Salvador. If the shareholder cannot be personally present at the signing of constitutional documents, another person can do it on their behalf based on an apostilled power of attorney.

5. Registration with the tax service

According to provisions of article 91 of the Tax Code of El Salvador, companies must file tax returns even if they are not required to pay taxes in El Salvador.

The registration takes place with the General Directorate of Internal Revenue (Dirección General de Impuestos Internos / DGII) within 10 workdays after the incorporation of the company.

6. Opening an account with a local bank

Since there is a requirement to pay the authorized capital, opening an account with a local bank is a necessary condition for establishment of a company.

To open an account with a local bank, a personal visit of the company’s director and authorized representative to the bank is required.

To start the company incorporation procedure in El Salvador, you need to:

1) tell us:

• desired name of the company to be checked for availability for registration (you should provide at least three options);
• structure of the company (director, shareholder);
• size of the authorized capital and distribution of shares among shareholders (taking into account the minimum investment requirement);
• proposed activity of the company and countries where the company is to conduct activity;

2) pay for services;

3) provide directors’ / members’ documents.

The list of required documents is provided separately (it will not be exhaustive as state authorities may request additional documents at their discretion at any stage of company incorporation).

The documents must be certified and apostilled; the original documents must be sent to El Salvador.

The approximate time required to incorporate a company in El Salvador isat least 3 weeks.

VAT applies to all goods and services sold in El Salvador. The standard value added tax rate is 13%; export of goods and services is taxed at a zero rate. There are also various VAT benefits for some foreign legal entities and individuals.

The corporate income tax rate is 30% and applies to the total income of the company. For companies whose taxable income for the financial year is equal to or under USD 150 000, there is a reduced corporate tax rate of 25%.

The corporate taxation system in El Salvador is based on the territorial principle. It means that taxes are paid on goods and services provided in El Salvador and on capital generated in El Salvador. However, there are exceptions to this rule: for example, income from securities and financial instruments issued by companies incorporated in El Salvador is considered to be received in El Salvador even if it is received outside the country.

This information is not a consultation. In order to determine the company’s tax burden, we recommend consulting a tax specialist (we can arrange such a consultation at request).

A company in El Salvador must annually prepare audited financial statements and file them with the Trade Register.Trade companies may be required to register with the Import and Export Procedures Center (CIEX) and the Customs Administration.

CIEX functions as a one-stop shop to simplify import and export processes combining all involved agencies and ministries under the control of the Central Reserve Bank (BCR); and the Customs Administration is the authority responsible for the management of procedures of import and customs clearance.

*The service fees are effective as of November 2025.